Tag Archives: messaging

Hybrid Messaging Key to Upselling Success: Report

Companies that aim to upsell their existing customers should develop a hybrid message that reinforces their existing relationships while providing an incentive to break the status quo, suggests
a new study commissioned by
Corporate Visions.

The study was conducted by Nick Lee, a professor at Warwick Business School, in partnership with the International Journal of Sales Transformation.

Corporate Visions previously has commissioned studies on how to shake prospective customers’ status quo bias to persuade them to consider your products or services, noted Tim Riesterer, chief strategy and research officer at the company.

The firm also has explored how to encourage existing customers to renew their relationships, which requires reinforcement of their bias toward the status quo, he noted.

“The latest round of research shows that the upsell dialogue is different, yet requires some of each from these two message types,” Riesterer told CRM Buyer. “There’s most importantly a relationship or partnership reinforcement aspect to the message, but there’s also some provocation involved with getting existing customers to make the change to upgraded solutions.”

Not Quite There

Upselling to existing customers was “important” or “very important” to their ability generate more revenue, said 87 percent of the participants in a recent Corporate Visions survey. Only 60 percent were satisfied with how many customers they were able to sway and how fast they could convert them.

A winning message, according to the report, centers around five pillars:

  • Document results
  • Highlight evolving pressures
  • Share hard truths
  • Explain risks of no change
  • Showcase upside opportunities

“The best upsell message — as validated by our research — employs some components of a customer retention story, that it looks to affirm and solidify the partnership by documenting the success to date, and identifying the deep relationships that have been estalished,” Riesterer said.

“This provides the positive, relational foundation for sharing evolving pressures and hard truths that are creating the need to evolve, as well as identifying the risks associated with not making a change,” he explained.

These types of messages are environment neutral and would be effective both in a traditional people-to-people selling environment and an e-commerce transactional environment, noted Riesterer.

The study did not involve live salespeople, he pointed out. The participants simply responded to a variety of messages. The study participants included 426 individuals placed in hypothetical business-to-business decision-making scenarios.

Relationship Building

The ability to drive sales to existing customers is critical, because of the difficulty in constantly having to build relationships with new prospects.

“It’s always less expensive to serve existing customers than acquire new ones,” noted Paula Rosenblum, manager partner at RSR Research.

“That’s a pretty standard rule of thumb in just about any industry,” she told CRM Buyer.

It can be up to 25 times more costly for a company to acquire a new customer than to sell to an existing one, based on earlier research from Harvard and Bain, noted Cindy Zhou, principal analyst for digital marketing transformation at Constellation Research.

“Existing customers are familiar with the company’s brand, [have built] relationships, and have the process in place to continue to do business,” she told CRM Buyer.

“The key is to build and demonstrate value to the customer, providing them with a reason to continue to work with the company,” Zhou said, adding that upselling a product has to fit the customer’s need.
end enn Hybrid Messaging Key to Upselling Success: Report


David Jones has been an ECT News Network reporter since 2015. His areas of focus include cybersecurity, e-commerce, open source, gaming, artificial intelligence and autonomous vehicles. He has written for numerous media outlets, including Reuters, Bloomberg, Crain’s New York Business and The New York Times. Email David.

Let’s block ads! (Why?)

CRM Buyer

The Future Of SMS And Text Messaging: Superpowers Of Conversion And Engagement

In the tech world in 2017, several trends emerged as signals amid the noise, signifying much larger changes to come.

As we noted in last year’s More Than Noise list, things are changing—and the changes are occurring in ways that don’t necessarily fit into the prevailing narrative.

While many of 2017’s signals have a dark tint to them, perhaps reflecting the times we live in, we have sought out some rays of light to illuminate the way forward. The following signals differ considerably, but understanding them can help guide businesses in the right direction for 2018 and beyond.

SAP Q417 DigitalDoubles Feature1 Image2 1024x572 The Future Of SMS And Text Messaging: Superpowers Of Conversion And Engagement

When a team of psychologists, linguists, and software engineers created Woebot, an AI chatbot that helps people learn cognitive behavioral therapy techniques for managing mental health issues like anxiety and depression, they did something unusual, at least when it comes to chatbots: they submitted it for peer review.

Stanford University researchers recruited a sample group of 70 college-age participants on social media to take part in a randomized control study of Woebot. The researchers found that their creation was useful for improving anxiety and depression symptoms. A study of the user interaction with the bot was submitted for peer review and published in the Journal of Medical Internet Research Mental Health in June 2017.

While Woebot may not revolutionize the field of psychology, it could change the way we view AI development. Well-known figures such as Elon Musk and Bill Gates have expressed concerns that artificial intelligence is essentially ungovernable. Peer review, such as with the Stanford study, is one way to approach this challenge and figure out how to properly evaluate and find a place for these software programs.

The healthcare community could be onto something. We’ve already seen instances where AI chatbots have spun out of control, such as when internet trolls trained Microsoft’s Tay to become a hate-spewing misanthrope. Bots are only as good as their design; making sure they stay on message and don’t act in unexpected ways is crucial.

SAP Q417 DigitalDoubles Feature1 Image3 The Future Of SMS And Text Messaging: Superpowers Of Conversion And EngagementThis is especially true in healthcare. When chatbots are offering therapeutic services, they must be properly designed, vetted, and tested to maintain patient safety.

It may be prudent to apply the same level of caution to a business setting. By treating chatbots as if they’re akin to medicine or drugs, we have a model for thorough vetting that, while not perfect, is generally effective and time tested.

It may seem like overkill to think of chatbots that manage pizza orders or help resolve parking tickets as potential health threats. But it’s already clear that AI can have unintended side effects that could extend far beyond Tay’s loathsome behavior.

For example, in July, Facebook shut down an experiment where it challenged two AIs to negotiate with each other over a trade. When the experiment began, the two chatbots quickly went rogue, developing linguistic shortcuts to reduce negotiating time and leaving their creators unable to understand what they were saying.

The implications are chilling. Do we want AIs interacting in a secret language because designers didn’t fully understand what they were designing?

In this context, the healthcare community’s conservative approach doesn’t seem so farfetched. Woebot could ultimately become an example of the kind of oversight that’s needed for all AIs.

Meanwhile, it’s clear that chatbots have great potential in healthcare—not just for treating mental health issues but for helping patients understand symptoms, build treatment regimens, and more. They could also help unclog barriers to healthcare, which is plagued worldwide by high prices, long wait times, and other challenges. While they are not a substitute for actual humans, chatbots can be used by anyone with a computer or smartphone, 24 hours a day, seven days a week, regardless of financial status.

Finding the right governance for AI development won’t happen overnight. But peer review, extensive internal quality analysis, and other processes will go a long way to ensuring bots function as expected. Otherwise, companies and their customers could pay a big price.

SAP Q417 DigitalDoubles Feature1 Image4 1024x572 The Future Of SMS And Text Messaging: Superpowers Of Conversion And Engagement

Elon Musk is an expert at dominating the news cycle with his sci-fi premonitions about space travel and high-speed hyperloops. However, he captured media attention in Australia in April 2017 for something much more down to earth: how to deal with blackouts and power outages.

In 2016, a massive blackout hit the state of South Australia following a storm. Although power was restored quickly in Adelaide, the capital, people in the wide stretches of arid desert that surround it spent days waiting for the power to return. That hit South Australia’s wine and livestock industries especially hard.

South Australia’s electrical grid currently gets more than half of its energy from wind and solar, with coal and gas plants acting as backups for when the sun hides or the wind doesn’t blow, according to ABC News Australia. But this network is vulnerable to sudden loss of generation—which is exactly what happened in the storm that caused the 2016 blackout, when tornadoes ripped through some key transmission lines. Getting the system back on stable footing has been an issue ever since.

Displaying his usual talent for showmanship, Musk stepped in and promised to build the world’s largest battery to store backup energy for the network—and he pledged to complete it within 100 days of signing the contract or the battery would be free. Pen met paper with South Australia and French utility Neoen in September. As of press time in November, construction was underway.

For South Australia, the Tesla deal offers an easy and secure way to store renewable energy. Tesla’s 129 MWh battery will be the most powerful battery system in the world by 60% once completed, according to Gizmodo. The battery, which is stationed at a wind farm, will cover temporary drops in wind power and kick in to help conventional gas and coal plants balance generation with demand across the network. South Australian citizens and politicians largely support the project, which Tesla claims will be able to power 30,000 homes.

Until Musk made his bold promise, batteries did not figure much in renewable energy networks, mostly because they just aren’t that good. They have limited charges, are difficult to build, and are difficult to manage. Utilities also worry about relying on the same lithium-ion battery technology as cellphone makers like Samsung, whose Galaxy Note 7 had to be recalled in 2016 after some defective batteries burst into flames, according to CNET.

SAP Q417 DigitalDoubles Feature1 Image5 The Future Of SMS And Text Messaging: Superpowers Of Conversion And EngagementHowever, when made right, the batteries are safe. It’s just that they’ve traditionally been too expensive for large-scale uses such as renewable power storage. But battery innovations such as Tesla’s could radically change how we power the economy. According to a study that appeared this year in Nature, the continued drop in the cost of battery storage has made renewable energy price-competitive with traditional fossil fuels.

This is a massive shift. Or, as David Roberts of news site Vox puts it, “Batteries are soon going to disrupt power markets at all scales.” Furthermore, if the cost of batteries continues to drop, supply chains could experience radical energy cost savings. This could disrupt energy utilities, manufacturing, transportation, and construction, to name just a few, and create many opportunities while changing established business models. (For more on how renewable energy will affect business, read the feature “Tick Tock” in this issue.)

Battery research and development has become big business. Thanks to electric cars and powerful smartphones, there has been incredible pressure to make more powerful batteries that last longer between charges.

The proof of this is in the R&D funding pudding. A Brookings Institution report notes that both the Chinese and U.S. governments offer generous subsidies for lithium-ion battery advancement. Automakers such as Daimler and BMW have established divisions marketing residential and commercial energy storage products. Boeing, Airbus, Rolls-Royce, and General Electric are all experimenting with various electric propulsion systems for aircraft—which means that hybrid airplanes are also a possibility.

Meanwhile, governments around the world are accelerating battery research investment by banning internal combustion vehicles. Britain, France, India, and Norway are seeking to go all electric as early as 2025 and by 2040 at the latest.

In the meantime, expect huge investment and new battery innovation from interested parties across industries that all share a stake in the outcome. This past September, for example, Volkswagen announced a €50 billion research investment in batteries to help bring 300 electric vehicle models to market by 2030.

SAP Q417 DigitalDoubles Feature1 Image6 1024x572 The Future Of SMS And Text Messaging: Superpowers Of Conversion And Engagement

At first, it sounds like a narrative device from a science fiction novel or a particularly bad urban legend.

Powerful cameras in several Chinese cities capture photographs of jaywalkers as they cross the street and, several minutes later, display their photograph, name, and home address on a large screen posted at the intersection. Several days later, a summons appears in the offender’s mailbox demanding payment of a fine or fulfillment of community service.

As Orwellian as it seems, this technology is very real for residents of Jinan and several other Chinese cities. According to a Xinhua interview with Li Yong of the Jinan traffic police, “Since the new technology has been adopted, the cases of jaywalking have been reduced from 200 to 20 each day at the major intersection of Jingshi and Shungeng roads.”

The sophisticated cameras and facial recognition systems already used in China—and their near–real-time public shaming—are an example of how machine learning, mobile phone surveillance, and internet activity tracking are being used to censor and control populations. Most worryingly, the prospect of real-time surveillance makes running surveillance states such as the former East Germany and current North Korea much more financially efficient.

According to a 2015 discussion paper by the Institute for the Study of Labor, a German research center, by the 1980s almost 0.5% of the East German population was directly employed by the Stasi, the country’s state security service and secret police—1 for every 166 citizens. An additional 1.1% of the population (1 for every 66 citizens) were working as unofficial informers, which represented a massive economic drain. Automated, real-time, algorithm-driven monitoring could potentially drive the cost of controlling the population down substantially in police states—and elsewhere.

We could see a radical new era of censorship that is much more manipulative than anything that has come before. Previously, dissidents were identified when investigators manually combed through photos, read writings, or listened in on phone calls. Real-time algorithmic monitoring means that acts of perceived defiance can be identified and deleted in the moment and their perpetrators marked for swift judgment before they can make an impression on others.

SAP Q417 DigitalDoubles Feature1 Image7 The Future Of SMS And Text Messaging: Superpowers Of Conversion And EngagementBusinesses need to be aware of the wider trend toward real-time, automated censorship and how it might be used in both commercial and governmental settings. These tools can easily be used in countries with unstable political dynamics and could become a real concern for businesses that operate across borders. Businesses must learn to educate and protect employees when technology can censor and punish in real time.

Indeed, the technologies used for this kind of repression could be easily adapted from those that have already been developed for businesses. For instance, both Facebook and Google use near–real-time facial identification algorithms that automatically identify people in images uploaded by users—which helps the companies build out their social graphs and target users with profitable advertisements. Automated algorithms also flag Facebook posts that potentially violate the company’s terms of service.

China is already using these technologies to control its own people in ways that are largely hidden to outsiders.

According to a report by the University of Toronto’s Citizen Lab, the popular Chinese social network WeChat operates under a policy its authors call “One App, Two Systems.” Users with Chinese phone numbers are subjected to dynamic keyword censorship that changes depending on current events and whether a user is in a private chat or in a group. Depending on the political winds, users are blocked from accessing a range of websites that report critically on China through WeChat’s internal browser. Non-Chinese users, however, are not subject to any of these restrictions.

The censorship is also designed to be invisible. Messages are blocked without any user notification, and China has intermittently blocked WhatsApp and other foreign social networks. As a result, Chinese users are steered toward national social networks, which are more compliant with government pressure.

China’s policies play into a larger global trend: the nationalization of the internet. China, Russia, the European Union, and the United States have all adopted different approaches to censorship, user privacy, and surveillance. Although there are social networks such as WeChat or Russia’s VKontakte that are popular in primarily one country, nationalizing the internet challenges users of multinational services such as Facebook and YouTube. These different approaches, which impact everything from data safe harbor laws to legal consequences for posting inflammatory material, have implications for businesses working in multiple countries, as well.

For instance, Twitter is legally obligated to hide Nazi and neo-fascist imagery and some tweets in Germany and France—but not elsewhere. YouTube was officially banned in Turkey for two years because of videos a Turkish court deemed “insulting to the memory of Mustafa Kemal Atatürk,” father of modern Turkey. In Russia, Google must keep Russian users’ personal data on servers located inside Russia to comply with government policy.

While China is a pioneer in the field of instant censorship, tech companies in the United States are matching China’s progress, which could potentially have a chilling effect on democracy. In 2016, Apple applied for a patent on technology that censors audio streams in real time—automating the previously manual process of censoring curse words in streaming audio.

SAP Q417 DigitalDoubles Feature1 Image8 1024x572 The Future Of SMS And Text Messaging: Superpowers Of Conversion And Engagement

In March, after U.S. President Donald Trump told Fox News, “I think maybe I wouldn’t be [president] if it wasn’t for Twitter,” Twitter founder Evan “Ev” Williams did something highly unusual for the creator of a massive social network.

He apologized.

Speaking with David Streitfeld of The New York Times, Williams said, “It’s a very bad thing, Twitter’s role in that. If it’s true that he wouldn’t be president if it weren’t for Twitter, then yeah, I’m sorry.”

Entrepreneurs tend to be very proud of their innovations. Williams, however, offers a far more ambivalent response to his creation’s success. Much of the 2016 presidential election’s rancor was fueled by Twitter, and the instant gratification of Twitter attracts trolls, bullies, and bigots just as easily as it attracts politicians, celebrities, comedians, and sports fans.

Services such as Twitter, Facebook, YouTube, and Instagram are designed through a mix of look and feel, algorithmic wizardry, and psychological techniques to hang on to users for as long as possible—which helps the services sell more advertisements and make more money. Toxic political discourse and online harassment are unintended side effects of the economic-driven urge to keep users engaged no matter what.

Keeping users’ eyeballs on their screens requires endless hours of multivariate testing, user research, and algorithm refinement. For instance, Casey Newton of tech publication The Verge notes that Google Brain, Google’s AI division, plays a key part in generating YouTube’s video recommendations.

According to Jim McFadden, the technical lead for YouTube recommendations, “Before, if I watch this video from a comedian, our recommendations were pretty good at saying, here’s another one just like it,” he told Newton. “But the Google Brain model figures out other comedians who are similar but not exactly the same—even more adjacent relationships. It’s able to see patterns that are less obvious.”

SAP Q417 DigitalDoubles Feature1 Image9 The Future Of SMS And Text Messaging: Superpowers Of Conversion And EngagementA never-ending flow of content that is interesting without being repetitive is harder to resist. With users glued to online services, addiction and other behavioral problems occur to an unhealthy degree. According to a 2016 poll by nonprofit research company Common Sense Media, 50% of American teenagers believe they are addicted to their smartphones.

This pattern is extending into the workplace. Seventy-five percent of companies told research company Harris Poll in 2016 that two or more hours a day are lost in productivity because employees are distracted. The number one reason? Cellphones and texting, according to 55% of those companies surveyed. Another 41% pointed to the internet.

Tristan Harris, a former design ethicist at Google, argues that many product designers for online services try to exploit psychological vulnerabilities in a bid to keep users engaged for longer periods. Harris refers to an iPhone as “a slot machine in my pocket” and argues that user interface (UI) and user experience (UX) designers need to adopt something akin to a Hippocratic Oath to stop exploiting users’ psychological vulnerabilities.

In fact, there is an entire school of study devoted to “dark UX”—small design tweaks to increase profits. These can be as innocuous as a “Buy Now” button in a visually pleasing color or as controversial as when Facebook tweaked its algorithm in 2012 to show a randomly selected group of almost 700,000 users (who had not given their permission) newsfeeds that skewed more positive to some users and more negative to others to gauge the impact on their respective emotional states, according to an article in Wired.

As computers, smartphones, and televisions come ever closer to convergence, these issues matter increasingly to businesses. Some of the universal side effects of addiction are lost productivity at work and poor health. Businesses should offer training and help for employees who can’t stop checking their smartphones.

Mindfulness-centered mobile apps such as Headspace, Calm, and Forest offer one way to break the habit. Users can also choose to break internet addiction by going for a walk, turning their computers off, or using tools like StayFocusd or Freedom to block addictive websites or apps.

Most importantly, companies in the business of creating tech products need to design software and hardware that discourages addictive behavior. This means avoiding bad designs that emphasize engagement metrics over human health. A world of advertising preroll showing up on smart refrigerator touchscreens at 2 a.m. benefits no one.

According to a 2014 study in Cyberpsychology, Behavior and Social Networking, approximately 6% of the world’s population suffers from internet addiction to one degree or another. As more users in emerging economies gain access to cheap data, smartphones, and laptops, that percentage will only increase. For businesses, getting a head start on stopping internet addiction will make employees happier and more productive. D!


About the Authors

Maurizio Cattaneo is Director, Delivery Execution, Energy, and Natural Resources, at SAP.

David Delaney is Global Vice President and Chief Medical Officer, SAP Health.

Volker Hildebrand is Global Vice President for SAP Hybris solutions.

Neal Ungerleider is a Los Angeles-based technology journalist and consultant.


Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.

Comments

Let’s block ads! (Why?)

Digitalist Magazine

For SMS Messaging, Getting Routing Right Is Important

When members of Lowe’s Innovation Labs first began talking with the home improvement retailer’s senior executives about how disruptive technologies would affect the future, the presentations were well received but nothing stuck.

“We’d give a really great presentation and everyone would say, ‘Great job,’ but nothing would really happen,” says Amanda Manna, head of narratives and partnerships for the lab.

The team realized that it needed to ditch the PowerPoints and try something radical. The team’s leader, Kyle Nel, is a behavioral scientist by training. He knows people are wired to receive new information best through stories. Sharing far-future concepts through narrative, he surmised, could unlock hidden potential to drive meaningful change.

So Nel hired science fiction writers to pen the future in comic book format, with characters and a narrative arc revealed pane by pane.

The first storyline, written several years before Oculus Rift became a household name, told the tale of a couple envisioning their kitchen renovation using virtual reality headsets. The comic might have been fun and fanciful, but its intent was deadly serious. It was a vision of a future in which Lowe’s might solve one of its long-standing struggles: the approximately US$ 70 billion left on the table when people are unable to start a home improvement project because they can’t envision what it will look like.

When the lab presented leaders with the first comic, “it was like a light bulb went on,” says Manna. “Not only did they immediately understand the value of the concept, they were convinced that if we didn’t build it, someone else would.”

Today, Lowe’s customers in select stores can use the HoloRoom How To virtual reality tool to learn basic DIY skills in an interactive and immersive environment.

SAP Q417 DigitalDoubles Feature3 Image2 For SMS Messaging, Getting Routing Right Is ImportantOther comics followed and were greeted with similar enthusiasm—and investment, where possible. One tells the story of robots that help customers navigate stores. That comic spawned the LoweBot, which roamed the aisles of several Lowe’s stores during a pilot program in California and is being evaluated to determine next steps.

And the comic about tools that can be 3D-printed in space? Last year, Lowe’s partnered with Made in Space, which specializes in making 3D printers that can operate in zero gravity, to install the first commercial 3D printer in the International Space Station, where it was used to make tools and parts for astronauts.

The comics are the result of sending writers out on an open-ended assignment, armed with trends, market research, and other input, to envision what home improvement planning might look like in the future or what the experience of shopping will be in 10 years. The writers come back with several potential story ideas in a given area and work collaboratively with lab team members to refine it over time.

The process of working with writers and business partners to develop the comics helps the future strategy team at Lowe’s, working under chief development officer Richard D. Maltsbarger, to inhabit that future. They can imagine how it might play out, what obstacles might surface, and what steps the company would need to take to bring that future to life.

Once the final vision hits the page, the lab team can clearly envision how to work backward to enable the innovation. Importantly, the narrative is shared not only within the company but also out in the world. It serves as a kind of “bat signal” to potential technology partners with capabilities that might be required to make it happen, says Manna. “It’s all part of our strategy for staking a claim in the future.”

Companies like Lowe’s are realizing that standard ways of planning for the future won’t get them where they need to go. The problem with traditional strategic planning is that the approach, which dates back to the 1950s and has remained largely unchanged since then, is based on the company’s existing mission, resources, core competencies, and competitors.

Yet the future rarely looks like the past. What’s more, digital technology is now driving change at exponential rates. Companies must be able to analyze and assess the potential impacts of the many variables at play, determine the possible futures they want to pursue, and develop the agility to pivot as conditions change along the way.

This is why planning must become completely oriented toward—and sourced from—the future, rather than from the past or the present. “Every winning strategy is based on a compelling insight, but most strategic planning originates in today’s marketplace, which means the resulting plans are constrained to incremental innovation,” says Bob Johansen, distinguished fellow at the Institute for the Future. “Most corporate strategists and CEOs are just inching their way to the future.” (Read more from Bob Johansen in the Thinkers story, “Fear Factor.”)

Inching forward won’t cut it anymore. Half of the S&P 500 organizations will be replaced over the next decade, according to research company Innosight. The reason? They can’t see the portfolio of possible futures, they can’t act on them, or both. Indeed, when SAP conducts future planning workshops with clients, we find that they usually struggle to look beyond current models and assumptions and lack clear ideas about how to work toward radically different futures.

Companies that want to increase their chances of long-term survival are incorporating three steps: envisioning, planning for, and executing on possible futures. And doing so all while the actual future is unfolding in expected and unexpected ways.

Those that pull it off are rewarded. A 2017 benchmarking report from the Strategic Foresight Research Network (SFRN) revealed that vigilant companies (those with the most mature processes for identifying, interpreting, and responding to factors that induce change) achieved 200% greater market capitalization growth and 33% higher profitability than the average, while the least mature companies experienced negative market-cap growth and had 44% lower profitability.

SAP Q417 DigitalDoubles Feature3 Image3 1024x572 For SMS Messaging, Getting Routing Right Is Important

Looking Outside the Margins

“Most organizations lack sufficient capacity to detect, interpret, and act on the critically important but weak and ambiguous signals of fresh threats or new opportunities that emerge on the periphery of their usual business environment,” write George S. Day and Paul J. H. Schoemaker in their book Peripheral Vision.

But that’s exactly where effective future planning begins: examining what is happening outside the margins of day-to-day business as usual in order to peer into the future.

Business leaders who take this approach understand that despite the uncertainties of the future there are drivers of change that can be identified and studied and actions that can be taken to better prepare for—and influence—how events unfold.

That starts with developing foresight, typically a decade out. Ten years, most future planners agree, is the sweet spot. “It is far enough out that it gives you a bit more latitude to come up with a broader way to the future, allowing for disruption and innovation,” says Brian David Johnson, former chief futurist for Intel and current futurist in residence at Arizona State University’s Center for Science and the Imagination. “But you can still see the light from it.”

SAP Q417 DigitalDoubles Feature3 Image4 For SMS Messaging, Getting Routing Right Is ImportantThe process involves gathering information about the factors and forces—technological, business, sociological, and industry or ecosystem trends—that are effecting change to envision a range of potential impacts.

Seeing New Worlds

Intel, for example, looks beyond its own industry boundaries to envision possible future developments in adjacent businesses in the larger ecosystem it operates in. In 2008, the Intel Labs team, led by anthropologist Genevieve Bell, determined that the introduction of flexible glass displays would open up a whole new category of foldable consumer electronic devices.

To take advantage of that advance, Intel would need to be able to make silicon small enough to fit into some imagined device of the future. By the time glass manufacturer Corning unveiled its ultra-slim, flexible glass surface for mobile devices, laptops, televisions, and other displays of the future in 2012, Intel had already created design prototypes and kicked its development into higher gear. “Because we had done the future casting, we were already imagining how people might use flexible glass to create consumer devices,” says Johnson.

Because future planning relies so heavily on the quality of the input it receives, bringing in experts can elevate the practice. They can come from inside an organization, but the most influential insight may come from the outside and span a wide range of disciplines, says Steve Brown, a futurist, consultant, and CEO of BaldFuturist.com who worked for Intel Labs from 2007 to 2016.

Companies may look to sociologists or behaviorists who have insight into the needs and wants of people and how that influences their actions. Some organizations bring in an applied futurist, skilled at scanning many different forces and factors likely to coalesce in important ways (see Do You Need a Futurist?).

Do You Need a Futurist?

Most organizations need an outsider to help envision their future. Futurists are good at looking beyond the big picture to the biggest picture.

Business leaders who want to be better prepared for an uncertain and disruptive future will build future planning as a strategic capability into their organizations and create an organizational culture that embraces the approach. But working with credible futurists, at least in the beginning, can jump-start the process.

“The present can be so noisy and business leaders are so close to it that it’s helpful to provide a fresh outside-in point of view,” says veteran futurist Bob Johansen.

To put it simply, futurists like Johansen are good at connecting dots—lots of them. They look beyond the boundaries of a single company or even an industry, incorporating into their work social science, technical research, cultural movements, economic data, trends, and the input of other experts.

They can also factor in the cultural history of the specific company with whom they’re working, says Brian David Johnson, futurist in residence at Arizona State University’s Center for Science and the Imagination. “These large corporations have processes and procedures in place—typically for good reasons,” Johnson explains. “But all of those reasons have everything to do with the past and nothing to do with the future. Looking at that is important so you can understand the inertia that you need to overcome.”

One thing the best futurists will say they can’t do: predict the future. That’s not the point. “The future punishes certainty,” Johansen says, “but it rewards clarity.” The methods futurists employ are designed to trigger discussions and considerations of possibilities corporate leaders might not otherwise consider.

You don’t even necessarily have to buy into all the foresight that results, says Johansen. Many leaders don’t. “Every forecast is debatable,” Johansen says. “Foresight is a way to provoke insight, even if you don’t believe it. The value is in letting yourself be provoked.”

External expert input serves several purposes. It brings everyone up to a common level of knowledge. It can stimulate and shift the thinking of participants by introducing them to new information or ideas. And it can challenge the status quo by illustrating how people and organizations in different sectors are harnessing emerging trends.

The goal is not to come up with one definitive future but multiple possibilities—positive and negative—along with a list of the likely obstacles or accelerants that could surface on the road ahead. The result: increased clarity—rather than certainty—in the face of the unknown that enables business decision makers to execute and refine business plans and strategy over time.

Plotting the Steps Along the Way

Coming up with potential trends is an important first step in futuring, but even more critical is figuring out what steps need to be taken along the way: eight years from now, four years from now, two years from now, and now. Considerations include technologies to develop, infrastructure to deploy, talent to hire, partnerships to forge, and acquisitions to make. Without this vital step, says Brown, everybody goes back to their day jobs and the new thinking generated by future planning is wasted. To work, the future steps must be tangible, concrete, and actionable.

SAP Q417 DigitalDoubles Feature3 Image5 For SMS Messaging, Getting Routing Right Is ImportantOrganizations must build a roadmap for the desired future state that anticipates both developments and detours, complete with signals that will let them know if they’re headed in the right direction. Brown works with corporate leaders to set indicator flags to look out for on the way to the anticipated future. “If we see these flagged events occurring in the ecosystem, they help to confirm the strength of our hypothesis that a particular imagined future is likely to occur,” he explains.

For example, one of Brown’s clients envisioned two potential futures: one in which gestural interfaces took hold and another in which voice control dominated. The team set a flag to look out for early examples of the interfaces that emerged in areas such as home appliances and automobiles. “Once you saw not just Amazon Echo but also Google Home and other copycat speakers, it would increase your confidence that you were moving more towards a voice-first era rather than a gesture-first era,” Brown says. “It doesn’t mean that gesture won’t happen, but it’s less likely to be the predominant modality for communication.”

How to Keep Experiments from Being Stifled

Once organizations have a vision for the future, making it a reality requires testing ideas in the marketplace and then scaling them across the enterprise. “There’s a huge change piece involved,”
says Frank Diana, futurist and global consultant with Tata Consultancy Services, “and that’s the place where most
businesses will fall down.”

Many large firms have forgotten what it’s like to experiment in several new markets on a small scale to determine what will stick and what won’t, says René Rohrbeck, professor of strategy at the Aarhus School of Business and Social Sciences. Companies must be able to fail quickly, bring the lessons learned back in, adapt, and try again.

SAP Q417 DigitalDoubles Feature3 Image6 For SMS Messaging, Getting Routing Right Is ImportantLowe’s increases its chances of success by creating master narratives across a number of different areas at once, such as robotics, mixed-reality tools, on-demand manufacturing, sustainability, and startup acceleration. The lab maps components of each by expected timelines: short, medium, and long term. “From there, we’ll try to build as many of them as quickly as we can,” says Manna. “And we’re always looking for that next suite of things that we should be working on.” Along the way certain innovations, like the HoloRoom How-To, become developed enough to integrate into the larger business as part of the core strategy.

One way Lowe’s accelerates the process of deciding what is ready to scale is by being open about its nascent plans with the world. “In the past, Lowe’s would never talk about projects that weren’t at scale,” says Manna. Now the company is sharing its future plans with the media and, as a result, attracting partners that can jump-start their realization.

Seeing a Lowe’s comic about employee exoskeletons, for example, led Virginia Tech engineering professor Alan Asbeck to the retailer. He helped develop a prototype for a three-month pilot with stock employees at a Christiansburg, Virginia, store.

The high-tech suit makes it easier to move heavy objects. Employees trying out the suits are also fitted with an EEG headset that the lab incorporates into all its pilots to gauge unstated, subconscious reactions. That direct feedback on the user experience helps the company refine its innovations over time.

SAP Q417 DigitalDoubles Feature3 Image7 1024x572 For SMS Messaging, Getting Routing Right Is Important

Make the Future Part of the Culture

Regardless of whether all the elements of its master narratives come to pass, Lowe’s has already accomplished something important: It has embedded future thinking into the culture of the company.

Companies like Lowe’s constantly scan the environment for meaningful economic, technology, and cultural changes that could impact its future assessments and plans. “They can regularly draw on future planning to answer challenges,” says Rohrbeck. “This intensive, ongoing, agile strategizing is only possible because they’ve done their homework up front and they keep it updated.”

It’s impossible to predict what’s going to happen in the future, but companies can help to shape it, says Manna of Lowe’s. “It’s really about painting a picture of a preferred future state that we can try to achieve while being flexible and capable of change as we learn things along the way.” D!


About the Authors

Dan Wellers is Global Lead, Digital Futures, at SAP.

Kai Goerlich is Chief Futurist at SAP’s Innovation Center Network.

Stephanie Overby is a Boston-based business and technology journalist.


Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.

Comments

Let’s block ads! (Why?)

Digitalist Magazine

Real-Time Personalized Messaging Is the Future of Marketing

20171108 bnr realtime mobile personalization 351x200 Real Time Personalized Messaging Is the Future of Marketing

But wait: There’s more. Way more. We don’t have to stick to emails anymore. Social media messages can be personalized and sent in real time. So can text messages, website notifications, and the almost futuristic beacons.

All of this is happening now. Over a million beacons will be installed in US stores this year. We’ve got the technology to share what the Gap screen lady knew, and the types of messages we can send are getting better ― and harder to ignore.

Companies like Google get this. Retail beacons can work with any Google product or service. They can even send data to partner applications. And they’re also working on which channel delivers these messages. Interestingly enough, they’re relaunching Google Glass, too.

While the technology around real-time personalized messaging is cool, fundamentally it’s not the technology that actually makes this work. … It’s us. It’s how we respond to messages.

Going all the way back to the time of mid-century advertising legend David Ogilvy, marketers knew that when you sent a message mattered. And timing still matters.

The old-school catalogers had a formula that considered timing. It let them pick which people on their list they were going to mail a catalog to.  The term they used, “Recency, Frequency, and Monetary” (or “RFM”, as some of you know all too well), referred to how recently a customer had purchased, how many times they had purchased, and how much money they had spent cumulatively on those purchases.

Think of it as the very first version of an algorithm for targeting the right customers.

But that was just a formula. Human-to-human interactions are much more sophisticated. Ask any sales person if timing matters … or even any savvy pre-teen or teenage kid. As humans, we know very well that there are good times and bad times to ask for things.

A simple example of this in modern marketing is the welcome email. Welcome emails get crazy-high engagement rates. The only other kind of email that gets higher engagement rates is a transaction email or a birthday email. And birthday emails are another example of a well-timed, personalized message.

Let’s block ads! (Why?)

Act-On Blog

EMS Links Its Courier Network To Tencent's Messaging Services

China Postal Express & Logistics Company Limited announced that they have reached a full strategic cooperation with the Chinese Internet giant Tencent for China Postal’s EMS service.

With the deal, the two parties will use their respective advantages in Internet, finance, technology, logistics, and omline sectors to jointly promote the transformation and upgrade of the traditional express delivery industry and clear the barriers among delivery companies, couriers, and users.

EMS’ delivery fee payments will connect to WeChat and mobile QQ online payment services in the future. In addition, EMS will realize smart receiving and delivery of goods for the first time so online users can buy products online and ship them around the world.

Zhang Wei, general manager for Tencent’s Internet Plus strategic cooperation, said that with Tencent’s active exploration in the Internet Plus sector and their leading social networking platforms such as WeChat and mobile QQ, Tencent hopes to inject Internet Plus and social genes into EMS and bring more vitality to the traditional express delivery industry to provide highly personalized, intelligent, and socialized delivery experience to users.

Financial terms of the arrangement were not released by either party.

Let’s block ads! (Why?)

ChinaWirelessNews.com

China's Bustling Instant Messaging World Adds New Entrant

Chinese instant messaging cloud service provider RongCloud has completed its first round financing of CNY50 million, which was led by ZEVC Management Co. Ltd.

Han Ying, chief executive officer of RongCloud, revealed that in the future the company will provide communications cloud services in nine sectors, including social, lifestyle services, games, e-commerce, videos, education, health, finance, and office collaboration.

RongCloud started publicly testing its instant messaging cloud services in August 2014. Its main businesses cover IM basic services, IM value-added services, and third-party public service interfaces. Its core team members formerly worked for Fetion’s technology R&D and operation teams.

According to official information from RongCloud, by February 2016, RongCloud claims to have served over 80,000 apps; its daily active users exceeded 20 million; and its daily messages were over 1.2 billion. The company’s clients include large enterprises such as Huawei and Xin Dong Fang and well-known Internet companies such as Baixing.com, Faceu, Xin.com, and Tujia.com.

RongCloud also has a robust number of open source projects available as part of its API located at GitHub.

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

ChinaWirelessNews.com

Vertica 'Excavator' release adds Kafka messaging and more

HP said it will boost the data streaming proficiency of its Vertica analytics platform, and improve SQL-on-Hadoop capabilities. According to the company, the next Vertica release, code-named “Excavator,” will support Apache Kafka, the up-and-coming open-source distributed messaging system. 

Excavator details emerged during the company’s recent Big Data Conference in Boston, at a time when HP was still in the midst of preparations to split into separate server-data center and PC-printer businesses, a move expected later this year.

Getting data to the right systems for processing is a big problem today, and the HP Vertica updates appear helpful, according to Chris Bohn, a senior database engineer with Etsy, Inc., which runs an online marketplace for artisans.

“What we want is a unified place for data, and Kafka can be used for that,” said Bohn, who is an Excavator beta user. He said his team will be looking at the SQL-on-Hadoop advances as well, adding that existing software of this variety has yet to meet his requirements.

What is now known as Apache Kafka emerged in 2011 from the work of development teams at LinkedIn Corp.  It is a messaging system, built to be distributed, and to support publish and subscribe computing architecture. It has often been used to feed Hadoop-based data processing systems.

From batch to real time

HP and others have used Apache open-source code to create versions of Kafka that can put large-scale data — including log and other file types — in motion. Although not on par with the fastest ”real-time” middleware, software like Kafka moves data handling closer to the realms of operations, and further away from roots in batch processing.

“The ability to take log files that are streaming in is important,” said Dan Vesset, program vice president of IDC’s Business Analytics research.

“This is not Wall Street trading speed streaming, but it is still a much higher speed than the traditional ETL, where you may be loading batches,” he said, noting that Vertica’s roots were in high-performance batch processing.

Vertica is “growing up,” adding features like Kafka into its portfolio, Vesset said. “We see Vertica and others moving to streaming from the traditional data warehousing scenario where batch jobs were loaded often at nightly intervals.”

Digging into Excavator

“There is a need for innovations that the traditional data warehouse market hasn’t serviced,” said Colin Mahony, general manager of Vertica within HP Software. In that regard, the Hadoop application framework has been an example, he said.

It takes a looser approach to data schema design than was common in traditional data warehousing, where full-fledged, set schema were often an obstacle to agile development.

Mahony said Vertica has addressed such needs with Flex Table technology that adapts to the unique demands of ever-changing semi-structured data. To further use Flex Table, he said HP open-sourced the Vertica Flex Zone Table Library for designers looking to pursue schema-on-the-fly. 

He said Excavator will support high-performance Hadoop data access by working directly on the Optimized Row Column (ORC)  file format. This has been developed and promoted by HP technology partner Hortonworks, which provides a Hadoop distribution.

Excavator’s new SQL-on-Hadoop tooling will enable existing Vertica SQL queries to run directly on this new variety of columnar files to improve performance of Hive SQL-on-Hadoop data reads. The release is also expected to include advanced machine-log text search and native integration with Apache Spark. The Vertica Excavator software is due for general release this fall. 

Jack Vaughan is SearchDataManagement’s news and site editor. Email him at jvaughan@techtarget.com, and follow us on Twitter: @sDataManagement.

Next Steps

Read about Vertica analytics uses in health care

Learn about Netezza analytics applications for marketing

See how others use SQL-on-Hadoop technology 

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.


SearchBusinessAnalytics: BI, CPM and analytics news, tips and resources